Covered Call
Neutral to Bullish on Underlying Stock
Though the covered call can be utilized in any market condition, it is most
often employed when the investor, while bullish on the underlying stock,
feels that its market value will experience little range over the lifetime of
the call con-tract. The investor desires to either generate additional
income (over dividends) from shares of the underlying stock, and/or
provide a limited amount of protection against a decline in underlying
stock value.
Neutral to Bullish on Underlying Stock
Though the covered call can be utilized in any market condition, it is most
often employed when the investor, while bullish on the underlying stock,
feels that its market value will experience little range over the lifetime of
the call con-tract. The investor desires to either generate additional
income (over dividends) from shares of the underlying stock, and/or
provide a limited amount of protection against a decline in underlying
stock value.